28 October 2014

Cree increases stock repurchase program to $550m for fiscal 2015

The board of directors of LED chip, lamp and lighting maker Cree Inc of Durham, NC, USA has approved an increase in the firm’s stock repurchase program, such that is now authorized to repurchase shares of its common stock worth up to $550m in fiscal 2015 (from 30 June 2014 through 28 June 2015).

Previously, in May, Cree’s board approved an increase in its stock repurchase program to $300m (spanning from 20 June 2013 through to a revised expiration date for the program of 28 June 2015.

So far in fiscal 2015, Cree has repurchased 2.65 million shares under the program at an average price of $36.54 per share (an aggregate value of $97m). There is hence $453m remaining in the firm’s stock repurchase program through 28 June 2015.

The repurchase program can be implemented through open market or privately negotiated transactions at the discretion of management. Cree will continue to determine the time and extent of any repurchases based on its evaluation of market conditions and other factors.

The board has also authorized the firm to secure an increase in its working capital line of credit facility (instigated in May at $150m) to $500m. The line of credit will provide Cree with the flexibility to fund strategic opportunities and its general business needs.

See related items:

Cree’s quarterly revenue falls 2% to $428m, as lower LED sales outweigh Lighting and Power & RF growth

Cree increases stock repurchase program to $300m

Tags: Cree LED

Visit: www.cree.com